The FTC Considers Changes to the Endorsement Guides

The Federal Trade Commission ("FTC") announced that it is considering changes to its guidelines for advertisers that post fake positive reviews or manipulating the reviews by suppressing bad ones. The FTC issued a press release to seek public comment on the proposed updates to its Endorsement Guides. These proposed changes would affect how advertisers promote their products and services. “We’re updating the guides to crack down on fake reviews and other forms of misleading marketing, and we’re warning marketers on stealth advertising that targets kids.” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Whether it’s fake reviews or influencers who hide that they were paid to post, this kind of deception results in people paying more money for bad products and services, and it hurts honest competitors.” If you recall, the Endorsement Guides, provide business guidance for advertising using endorsements or testimonials that are truthful. Advertisers need to be transparent with consumers in their disclosures and marketing to ensure that they disclose the monetary connection between an endorsement and testimonial provider and the advertiser.